Strong manufacturing readings and a drive in US construction spending has reinforced the greenbacks hold over the majority of its currency counterparts, posting over 3% gains for the second consecutive month. Yesterday saw Trump acting on his promise to encourage US companies to keep their production in the States. The president elect was credited for saving 1,000 jobs at Carrier corp, an air con company planning to de-localize to Mexico before Trump promised a swift change in tax exemptions.
Furthermore, Putins cooperation with OPEC could spell long term strength for the USD going forward with the potential of future trade deals far more likely to follow.
However, the greenbacks inability to capitalize on the current political instability within the Eurozone has lead investors to see value in the Pound. Sterling rose for the seventh time in nine sessions against the Dollar with the Euro rising by 0.70% to $1.06.
Furthermore, Trump was yesterday forced into a statement promising he will dissolve himself of any involvement with his previous business empire in order to eliminate a potential conflict of interest that could influence his decisions going forward. His connection to the Dakota pipeline completion has brought to light just how much of a challenge this could prove to be. I believe there will be a number of implications on the back of this in the coming weeks and as, such expect a fair amount of volatility as a result.
The outlook does look good for US Dollar holders with every indicator pointing towards an imminent FED rate hike which could bring further stability to an already dominant Dollar. The higher returns of investment promised by an interest rate hike will certainly drive a lot of attention. With economists projecting a rise up to 0.75%, pressure on the Pound and Euro should be expected.
Unemployment figures as well as non-farm pay rolls will be realized later today giving a good insight into the growth of the economy. It may pay to get in touch with your account manager to make sure you can capitalize on any short term buying opportunities.
If you have a US Dollar requirement but do not have an account with us, call us on 01494 725 353 or email me here, Set up only takes a few minutes and you will be assigned your own currency specialist throughout the process.
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